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26/07/2012
NIE Faces Downgrading Over Price Hike Row
Northern Ireland Electricity's credit rating is at risk of being downgraded, the BBC has reported.
Ratings agencies Fitch and Standard and Poors have issued a warning to investors that NIE is a risky investment.
It comes after a disagreement with the utility regulator over his refusal to allow an increase in electricity prices.
NIE has pushed for a price hike, saying power lines and poles on the supply grid need upgrading.
Managing director Joe O'Mahony said much of Northern Ireland’s rural electricity dates back to the 1970s and 1980s.
He said: "We believe strongly that the utility regulator's final proposals for the next five years should allow NIE to efficiently finance the modernisation of Northern Ireland's ageing electricity infrastructure to improve its future reliability, support economic development and facilitate the NI Assembly's renewable energy targets."
Utility regulator Shane Lynch said his task was to balance NIE's needs with the needs of customers to pay "a reasonable price, but no more than that".
Mr Lynch said levels of fuel poverty here had reached "almost 50%" and he had a responsibility to protect customers.
He claimed it was "not untypical for a rating agency to put a company on rating watch negative" during an uncertain price control period and pointed out that Fitch had done the same to other companies in Great Britain.
(NE)
Ratings agencies Fitch and Standard and Poors have issued a warning to investors that NIE is a risky investment.
It comes after a disagreement with the utility regulator over his refusal to allow an increase in electricity prices.
NIE has pushed for a price hike, saying power lines and poles on the supply grid need upgrading.
Managing director Joe O'Mahony said much of Northern Ireland’s rural electricity dates back to the 1970s and 1980s.
He said: "We believe strongly that the utility regulator's final proposals for the next five years should allow NIE to efficiently finance the modernisation of Northern Ireland's ageing electricity infrastructure to improve its future reliability, support economic development and facilitate the NI Assembly's renewable energy targets."
Utility regulator Shane Lynch said his task was to balance NIE's needs with the needs of customers to pay "a reasonable price, but no more than that".
Mr Lynch said levels of fuel poverty here had reached "almost 50%" and he had a responsibility to protect customers.
He claimed it was "not untypical for a rating agency to put a company on rating watch negative" during an uncertain price control period and pointed out that Fitch had done the same to other companies in Great Britain.
(NE)
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Northern Ireland WeatherToday:It will be cloudy again throughout the day. Mainly dry in the morning, but patchy drizzle in places, becoming more widespread and persistent in the afternoon. Freshening southwesterly winds. Maximum temperature 12 °C.Tonight:Cloudy with a spell of heavy rain pushing south through late evening and the early hours, followed by some clear spells. Minimum temperature 6 °C.
